Sector News

Perrigo to Buy Omega Pharma for $4.5 Billion

November 6, 2014
Life sciences
Perrigo Co. PLC has agreed to buy Belgium-based Omega Pharma NV in a bid to expand its portfolio of over-the-counter drugs and broaden its market presence throughout Europe.
The companies said the deal was valued at 3.6 billion euros, or $4.5 billion, which includes 2.48 billion euros in equity and 1.1 billion euros in debt. About 25% of the equity price will be paid in Perrigo stock to Omega founder Marc Coucke, while the remaining 75% will be funded through a combination of cash and debt, they added.
Perrigo said it has secured a 1.75 billion-euro bridge loan from J.P. Morgan Chase Bank and Barclays.
Omega, the fifth-largest entity in the $30 billion European OTC market, made about $1.6 billion in revenue in the 12-month period ended Sept. 30, the companies said. It boasts a portfolio of about 2,000 products, including treatments for colds, pain and gastrointestinal problems.
Perrigo said it expects the deal to be immediately accretive to its adjusted per-share earnings, with double-digit accretion coming during its 2016 fiscal year.
The companies expect the acquisition to close in the first quarter of next year.
Also Thursday, Perrigo unveiled weaker-than-expected results for the most recent quarter.
For the period ended Sept. 27, the company posted $96.3 million in profit, or 72 cents a share, down from $111.4 million, or $1.18 a share. Excluding certain items, per-share earnings were $1.40.
Net sales rose about 2% to $951.5 million.
Analysts polled by Thomson Reuters had projected $1.44 a share in earnings and $998 million in revenue.
By Michael Calia

Related News

September 18, 2020

Eli Lilly, Amgen join forces to scale production of COVID-19 antibody cocktails

Life sciences

Months of fervid research have whittled away most potential options to treat patients with COVID-19, a group of antibody cocktails still hold promise. Eli Lilly believes so strongly in its contender that it’s […]

September 16, 2020

Takeda unveils new Boston R&D manufacturing center for cell therapy pipeline push

Life sciences

Japanese drugmaker Takeda has trumpeted its plan in recent years to cut billions of dollars in costs and pivot around oncology and rare diseases. A key part of that strategy […]

September 15, 2020

AstraZeneca, Oxford restart stalled COVID-19 test as Pfizer ramps up trial numbers for its vaccine

Life sciences

Just under a week after it stopped its key phase 3 pandemic vaccine test, AstraZeneca and the University of Oxford have been given the green light to restart in the […]